3. 3
• A global customer experience specialist…
• …employing 30,000 people…
• …representing more than 100 nationalities...
• …operating 54 contact centers, onshore, off-shore and
near shore…
• …in 23 countries…
• …delivering services in 33 languages...
• ...to over 400 clients in various industry verticals…
• …generating €616.8 million revenue in 2014…
• …with a market cap of SEK 2.1 billion as at March 31, 2015. Listed on Nasdaq
Stockholm (Mid Cap segment) under ticker TWW.
Transcom in numbers
4. 4
• Founded in Sweden in
1995
• European expansion;
focus on organic growth
• Presence in 15 European
countries at the end of
2001
• Transcom WorldWide
formed in 2000,
headquartered in
Luxembourg
• Shares were listed in
2001
• Acquisition-led growth
• Diversification into debt
collection via acquisitions
• Expansion of near-shore
services
• Establishment in Latin
America, serving Spanish
clients
• Expansion into North
America & Asia through
acquisition of NuComm
and Cloud10
• Restructuring program to
strengthen
competitiveness and
improve profitability
• Focus on growth in
prioritized geographies;
divestment of smaller
country operations
• Divestment of Credit
Management Services
(CMS) unit, to focus on
core customer care
business
• Re-domiciliation to
Sweden
• Growth with clients while
creating more balanced
client portfolio
• Continuously improve
service offering, focusing
on advanced, value-
added services
• Strengthen global
footprint
• Ensure competitive
operational platform
This year, Transcom celebrates 20 years in business
5. Steady improvement towards our mid-term
EBIT margin target of at least 5 percent
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
Q1 2013 Q1 2014 Q1 2015
5
12-month rolling EBIT* margin development
* Excluding non-recurring items
Mid-term target
• Targeted sales efforts
-Growth with existing
clients in new
geographies
-Broadening client base
• Efficiency improvements
and continuous focus on
underperforming areas
6. 6
Q1 2014 Q1 2015
Net income, Q1 2015 vs. Q1 2014
€m
5.3
1.6
Net income improved significantly in the quarter
• €2.5m improvement in net
financial items
• Income tax decreased by €0.7m
(current tax in Q1 2015: 25%)
8. 8
Q1 2014 Q1 2015
Like-for-like revenue, Q1 2015 vs. Q1 2014
€m
160.9157.1 • Like-for-like revenue in Q1 2014
adjusted for currency effects (€+4.6m)
and CMS divestments (€-6.7m), and
one-off effect in Q1 2014 (€-0.9m due
to sale of right to collect on portfolio)
• The €3.8m like-for-like revenue
increase was mainly driven by higher
business volumes in North Europe and
Iberia & Latam
• We are refocusing our efforts on
revenue growth, targeting at least 5%
On a like-for-like basis, revenue in Q1 2015 increased
by 2.4%
9. 9
EBIT Q1 2014 One-off items
Q1 2014
Cost savings
programs
Volume &
efficiency
Expansion
costs
Other EBIT Q1 2015
5.4 -2.1
+1.7
-0.2
+0.6
+0.4
EBIT (mEUR)
Q1 2014 vs. Q1 2015
5.9
EBIT margin in Q1 2015 improved to 3.7% from 3.4%
(1.6% in Q1 2014 excluding CMS and one-off effect)
• EBIT in Q1 2014 includes €1.0m from since-divested CMS units and a positive €0.9m one-off effect
• Excluding the effects mentioned above, the EBIT margin improved by 2.1 percentage points
• Higher profitability in the North America & Asia Pacific and Iberia & Latam regions
10. 10
• North Europe: EBIT strengthened due to higher
volumes and improved efficiency in the
Netherlands. EBIT in Q1 2014 was positively
impacted by a €0.9m one-off item.
• Central & South Europe: Lower volumes in
Italy and start-up of new projects.
• Iberia & Latam: Improved profitability in Chile
and Portugal. Continued focus on improving
efficiency in Latin America.
• North America & Asia Pacific: Increased
efficiency and cost reductions. Positive
development in Asia continues.
EBIT margin improvement driven by higher profitability in
North America & Asia Pacific and Iberia & Latam
2015
Jan-Mar
2014
Jan-Mar
EBIT margin
North Europe
Central & South Europe
Iberia & Latam
North America & AP
CRM
CMS*
Total
4.8%
4.2%
1.3%
3.5%
3.7%
n/a*
3.7%
4.8%
5.3%
-1.1%
0.3%
2.3%
18.1%
3.4%**
* Divested since Q1 2014
** 1.6% excluding CMS and €0.9m one-off effect in Q1 2014
11. Trend vs.
Q1 2014
Q1 2015 vs. Q1 2014
Average seat utilization
ratio
Average Efficiency ratio
(billable over worked hours
Monthly staff attrition
89% vs 88%
n/a – slight positive development
Decrease – positive development
11
Improvements on KPIs vs. previous year
Key drivers to reach mid-term profitability targets
12. 12
80.7
86.3
91.1
94.6 94.4
90.1
85.7
67.0
62.8
56.7
38.1
59.3 56.7
49.7
36.2
55.3 54.3
38.4
24.6 27.1
0.00
0.50
1.00
1.50
2.00
2.50
3.00
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 Q115
Gross debt (€ m) Net debt (€ m) Net debt/EBITDA
• Gross debt decreased by €6.1m compared to the Q414 level
• Net Debt increased by €2.5m compared to the Q414 level
• Net Debt/EBITDA ratio: 0.9 (0.9 in Q414)
Debt & leveraging
15. Attractive market growth
15
• 5-6% annual growth in customer
management BPO in the next five years
• Fastest growth in emerging APAC and
Latam…
• …but the bulk of the industry increase will
be generated in mature markets, in
particular the United States
16. An industry in change
16
PRIMARY CHANNELS USED:
•Telephone, including voice and interactive voice
response (IVR) self-service
•Email response management
•Web chat
•Social media monitoring and response
•Knowledge management for Web-based self-service
17. Frost & Sullivan recognizes Transcom’s growth and
innovation in multiple customer care outsourcing markets
17
• 2015 European Frost & Sullivan Award for
Visionary Innovation Leadership
• 2014 Peru Frost & Sullivan Award for Growth
Excellence Leadership
• 2014 Philippines Contact Center Outsourcing
Growth Excellence Leadership Award
